Jammu and Kashmir Economy Expected to Grow at 7.06% in 2024-25

Jammu, Mar 6 (PTI) The economy of Jammu and Kashmir is projected to grow at 7.06 per cent in real terms, while the nominal Gross State Domestic Product (GSDP) is expected to rise by 11.19 per cent in 2024-25, according to the Economic Survey Report (ESR) for 2025.

The report said that J&K has shown significant progress, with the unemployment rate declining to 6.1 per cent in 2023-24 from 6.7 per cent in 2019-20.

Chief Minister Omar Abdullah, who also serves as the finance minister, tabled the report in the J&K Assembly on Thursday.

The report provides an in-depth analysis of the region’s economic performance, development progress, and future outlook, offering valuable insights for policymakers and stakeholders.

“The real GSDP of J&K is expected to grow at 7.06 per cent, and the nominal GSDP is expected to grow at 11.19 per cent in 2024-25,” the report stated.

“The size of J&K’s economy (Nominal Gross State Domestic Product) is estimated to be approximately Rs 2.65 lakh crore, and its real GSDP is estimated to be about Rs 1.45 lakh crore during 2024-25,” it said.

The report stated that J&K is estimated to achieve a compound annual growth rate of 4.89 per cent in its real GSDP from 2019-20 to 2024-25, compared to the 4.81 per cent growth rate recorded from 2011-12 to 2019-20.

The report further stated that J&K’s per capita annual income (per capita NSDP) at current prices is estimated to reach Rs 1,54,703 in 2024-25 (advance estimates), compared to the national per capita income of Rs 2,00,162 in 2024-25.

As per the report, the per capita income of J&K at current prices is anticipated to grow at 10.6 per cent in 2024-25.

“The comparative analysis of J&K’s per capita income with that of northern states from 2019-20 to 2023-24 indicates that J&K’s per capita income grew at a compound annual growth rate of 8.3 per cent, which is higher than Punjab (6.22 per cent), Delhi (6.74 per cent), and Himachal Pradesh (6 per cent),” it said.

The report further maintained that J&K is actively contributing to the national GDP (0.8 per cent) in proportion to its population (0.98 per cent).

“The primary, secondary, and tertiary sectors are expected to contribute 20.00 per cent, 18.30 per cent, and 61.70 per cent, respectively, to the Gross State Value Added during 2024-25,” it said.

It stated that inflation in J&K increased to 4.5 per cent in 2024 from 4.3 per cent in 2023, showing an overall rise of 0.2 percentage points. In contrast, at the all-India level, inflation decreased to 5 per cent from 5.7 per cent during the same period.

Inflation in J&K hovered between 3.8 per cent and 4.5 per cent from 2019 to 2024, compared to national figures of 3.7 per cent to 5.0 per cent during the same period.

The report further stated that a revenue of Rs 15,737.80 crore was realised in the first nine months of the financial year 2024-25, which is 77 per cent of the Rs 20,333.55 crore revenue realised in 2023-24.

The contribution of non-tax revenue to total revenue increased to 32 per cent in FY25, the report said and pointed out that the share of power tariffs in non-tax revenue grew from 56 per cent to 67 per cent since FY22.

“Tax revenue of Rs 10,624.09 crore was realised in the first nine months of FY25, which is 76 per cent of the Rs 13,903.22 crore revenue realised in FY24, whereas non-tax revenue of Rs 5,113.71 crore was realised in the first nine months of FY25, which is 80 per cent of the Rs 6,430.33 crore revenue realised in FY24,” it added.

Among the major revenue contributors, the highest increase of 96 per cent in revenue realisation was witnessed in taxes on vehicles, followed by a 67 per cent increase in power, 36 per cent in GST, 33 per cent in water user charges, and 14 per cent in excise collection, among others, it said.

The revenue expenditure in the first nine months of FY25 stood at Rs 49,828 crore, which is 75 per cent of the Rs 66,621 crore revenue expenditure incurred in FY24.

Meanwhile, capital expenditure in the first nine months of FY25 stood at Rs 11,538 crore, which is 51 per cent of the Rs 22,531 crore capital expenditure incurred in FY24.

The report revealed that J&K has shown significant progress, with the unemployment rate on usual status declining to 6.1 per cent in 2023-24 from 6.7 per cent in 2019-20.

“This improvement is also reflected in the Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR), which have risen to 64.3 per cent and 60.4 per cent, respectively, in 2023-24, showcasing enhanced employment opportunities and economic activities in J&K,” it said.

As many as 40,778 units have been established under various self-employment schemes (SESS), employing about 1.16 lakh young boys and girls, it said.

It stated that 35.28 lakh unorganised workers have been registered on the e-SHRAM portal as of November 2024.

It added that gross non-performing asset has reduced from 5.71 per cent in December 2022 to 4.13 per cent as of March 2024.

The report revealed that total food crop production increased by 7.12 per cent (from 19,515 thousand quintals to 20,904 thousand quintals) over the past year. The region has also progressed towards self-reliance in vegetable production, reaching 520 thousand quintals in 2023-24.

The agriculture sector in J&K is shifting towards high-value crops, organic vegetables, and exotic varieties. Under initiatives like the Holistic Agriculture Development Plan, the government will invest Rs 5,013 crore in 29 projects over five years. This is expected to add Rs 28,000 crore to GSDP, creating 2.88 lakh sustainable jobs, it said.

It added that the plan will also benefit 13 lakh families and provide skills to 2.5 lakh youth through 19,000 new enterprises.

No Delay in Salary Hikes; Merit Increases For Eligible Employees to be Rolled Out in August: Cognizant

New Delhi, Mar 4 (PTI) Refuting reports about the delayed salary hikes, IT firm Cognizant on Tuesday said there will be no delay in its cycle and merit increases for eligible employees will be rolled out in August.

The New Jersey-headquartered firm, in a statement, said it will also be paying bonuses to eligible associates in mid-March.

“Merit increases for eligible associates will be awarded in August, exactly one year after the prior cycle. In fact, with the August 2025 cycle, the majority of our associates will receive five merit increases within the past four years. There has been no delay in the merit cycle, and any claims to the contrary are incorrect,” the company said.

The company remains steadfast in its commitment to recognising the hard work and dedication of its associates through merit increases and bonuses, it added.

Karnataka Signs ₹200 cr MoU With Steer World to Drive Sustainable Manufacturing

Bengaluru, Mar 5 (PTI) The Karnataka government on Wednesday signed a Memorandum of Understanding (MoU) with Bengaluru-based Steer World, a global leader in advanced materials and sustainable manufacturing solutions, to catalyse innovation, foster industrial growth, and promote sustainable practices within India’s manufacturing sector.

According to the MoU, Steer World will be allocating ₹200 crore over the next five years.

Babu Padmanabhan, Founder, Managing Director, and Chief Knowledge Officer of Steer World told PTI that the initiative will target several strategic domains, including the development of sustainable materials, advancements in automation technologies, and fostering industrial innovation that embraces cutting-edge practices.

“The project is expected to generate over 300 high-skilled jobs, significantly contributing to local employment and enhancing the workforce’s capabilities in advanced manufacturing techniques,” added Padmanabhan.

He also said Steer World aims to foster partnerships with leading research institutions, and industry stakeholders to pave the way for the development of next-generation technologies and solutions.

“Karnataka’s dynamic ecosystem, characterised by its innovative spirit and supportive infrastructure, makes it the ideal location for our expansion,” he added.

The MoU was formalised in the presence of S Selvakumar, Principal Secretary of the Commerce and Industries Department, Government of Karnataka.

HPCL, Tata Motors Launch Co-Branded Diesel Exhaust Fluid ‘Genuine DEF’

Mumbai, Mar 5 (PTI) Public sector oil marketing firm HPCL on Wednesday launched a co-branded diesel exhaust fluid ‘Genuine DEF’ in collaboration with Tata Motors.

The co-branded diesel exhaust fluid will be available across 23,000 fuel stations of the Hindustan Petroleum Corporation Limited (HPCL) pan-India as well as over 2,000 authorised outlets of Tata Motors.

The high quality Diesel Exhaust Fluid (DEF) solution will drive optimal vehicle performance, boost drivetrain efficiency, and extend the vehicle’s longevity.

“Our partnership with Tata Motors for co-branded Diesel Exhaust Fluid is a significant step toward reducing emissions and supporting cleaner transportation solutions,” said Amit Garg, Director of marketing at HPCL.

An essential component for modern 856-compliant diesel vehicles, DEF helps in reducing harmful emissions by breaking down potentially harmful nitrogen into safer and cleaner nitrogen and water.

By using the co-branded Genuine DEF, Tata Motors customers can conveniently enhance vehicle efficiency, while ensuring compliance of emission and environmental norms, HPCL said.

“… Our co-branded Genuine Diesel Exhaust Fluid ensures that Tata Motors customers can access it now even more easily across the country, and achieve optimal performance, while complying with highest environmental standards,” said Girish Wagh, Executive Director at Tata Motors.

Brookfield Announces Sale Of 1.6 GW Of Renewable Assets To Gentari

New Delhi, Mar 5 (PTI) New York-based asset management firm Brookfield on Wednesday announced the sale of 1.6 GW portfolio of solar and wind assets in India to Gentari Renewables India for an undisclosed sum of money.

The sale will be structured in two phases, Brookfield Asset Management Ltd said in a statement.

“The first phase, comprising the sale of 1 GW of operating assets, is complete. This marks Brookfield’s first full cycle portfolio monetization in India for its renewable power and transition business.”

It, however, did not give financial details of the sale.

Brookfield is one of the world’s largest investors in renewable power, with about 46 gigawatts of installed capacity and a development pipeline of about 200 GW. In India, its renewable power and transition portfolio comprises 40 GW of wind and solar assets in operation, construction and/or development across leading platforms.

Nawal Saini, Managing Director, Head of Renewable Power & Transition, South Asia and the Middle East, Brookfield said, “Our focus is on delivering value to our stakeholders while advancing the country’s energy transition. Monetizing a part of our portfolio demonstrates our ability to create and realize value.

“This transaction with Gentari reinforces investor confidence and unlocks new opportunities for further capital allocation in the country. With approximately 40 GW of wind and solar assets across various stages, our overall portfolio reflects our long-term commitment in India.”

Brookfield assets, located in North and South America, Europe, and Asia Pacific comprise a diverse technology base of hydroelectric, wind, utility-scale solar and storage facilities.

Trump Criticises High Tariffs Charged By India, Announces Reciprocal Tariffs From April 2

New York/Washington, Mar 5 (PTI) US President Donald Trump criticised the high tariffs charged by India and other countries, terming them as “very unfair” and announced reciprocal tariffs from April 2 on nations that impose levies on American goods.

Trump made these remarks in an address to the Joint Session of the Congress on Tuesday. It was the first address of his second term in the White House. On January 20, Trump was sworn in as the 47th President of the US.

“If you don’t make your product in America, however, under the Trump administration, you will pay a tariff and in some cases, a rather large one,” Trump said. “Other countries have used tariffs against us for decades and now it’s our turn to start using them against those other countries. On average, the European Union, China, Brazil, India, Mexico and Canada — have you heard of them? And countless other nations charge us tremendously higher tariffs than we charge them,” Trump said.

“It’s very unfair. India charges us auto tariffs higher than 100 per cent.”

In February, President Trump said that his administration would “soon” impose reciprocal tariffs on countries such as India and China, reiterating what he had said during Prime Minister Narendra Modi’s visit to the US capital last month.

Trump has made it clear to Prime Minister Modi that India will not be spared from Washington’s reciprocal tariffs and emphasised that “nobody can argue with me” on tariff structure.

“China’s average tariff on our products is twice what we charge them. And South Korea’s average tariff is four times higher. Think of that. Four times higher. And we give so much help militarily and in so many other ways to South Korea. But that’s what happens. This is happening by friend and foe,” Trump said.

“We’ve been ripped off for decades by nearly every country on earth, and we will not let that happen any longer,” Trump said.

Asserting that this system is “not fair to the United States” and never was, Trump said that reciprocal tariffs will kick in from April 2.

“Whatever they tariff us, other countries, we will tariff them. That’s reciprocal, back and forth,” Trump said amid applause from Republican lawmakers.

“Whatever they tax us, we will tax them. If they do non-monetary tariffs to keep us out of their market, then we will do non-monetary barriers to keep them out of our market. There’s a lot of that too. They don’t even allow us in their market. We will take in trillions and trillions of dollars and create jobs like we have never seen before,” Trump said.

He added that “I did it with China, and I did it with others and the Biden administration couldn’t do anything about it because it was so much money they couldn’t do anything about it.”

He added that the US has very large deficits with both Mexico and Canada.

“But even more importantly, they have allowed fentanyl to come into our country at levels never seen before, killing hundreds of thousands of our citizens and many very young, beautiful people, destroying families. Nobody’s ever seen anything like it. They are in effect receiving subsidies of hundreds of billions of dollars. We pay subsidies to Canada and to Mexico of hundreds of billions of dollars. And the United States will not be doing that any longer. We are not going to do it any longer.”

Trump is implementing a 25 per cent additional tariff on imports from Canada and Mexico and a 10 per cent additional tariff on imports from China. In a retaliatory action, Canada said that effective March 4, 2025, it is imposing 25 per cent tariffs on USD 30 billion in goods imported from the United States.

Mexico said it will announce reciprocal action on Sunday.

China also announced it will impose additional tariffs of up to 15 per cent on imports of key US farm products.

In the past, Trump has called India “tariff king” and a “big abuser”.

Last month, during a joint press conference with Prime Minister Modi in the White House, Trump had said that India has “been very strong on tariffs”, and “I don’t blame them, necessarily, but it’s a different way of doing business. It’s very hard to sell into India because they have trade barriers, very strong tariffs.”

Trump had noted that as a signal of good faith, Modi had recently announced the reductions to India’s “unfair, very strong tariffs” that limit US access into the Indian market very strongly.

“And really, it’s a big problem, I must say. India imposes a 30 to 40 to 60 and even 70 per cent tariff on so many of the goods and, in some cases, far more than that. As an example, a 70 per cent tariff on US cars going into India, which makes it pretty much impossible to sell those cars.”

Trump had said that the US trade deficit with India is almost USD 100 billion, and Modi and he agreed that “we’ll begin negotiations to address the long-running disparities that should have been taken care of over the last four years — but they didn’t do that — in the US-India trading relationship, with the goal of signing an agreement.” “And we want — really, we want a certain level playing field, which we really think we’re entitled to, and he does also, in fairness, so we’re going to work on that very hard,” Trump said.

Commerce Minister Piyush Goyal is in Washington for trade talks with his US counterpart Howard Lutnick.

As per US estimates, the US total goods trade with India was an estimated USD 129.2 billion in 2024.

The US goods exports to India in 2024 were USD 41.8 billion, up 3.4 per cent (USD 1.4 billion) from 2023. US goods imports from India totalled USD 87.4 billion in 2024, up 4.5 per cent (USD 3.7 billion) from 2023. The US goods trade deficit with India was USD 45.7 billion in 2024, a 5.4 per cent increase (USD 2.4 billion) over 2023.

Jabil to Set Up Silicon Photonics Plant in Gujarat

Gandhinagar, Mar 5 (PTI) US electronics manufacturing company Jabil has plans to set up a silicon photonics manufacturing factory in Gujarat, a senior official of the company said on Wednesday.

While speaking at IESA Vision Summit, Jabil, Executive Vice President, global business unit, Matt Crowley said that the company has decades of experience in silicon photonics products.

“As we look to the future, we are very excited to announce that we have plans to open a new factory in Gujarat. We are very excited to announce MoU specific to Silicon Photonics manufacturing in the state of Gujarat today,” Crowley said.

The plant will be operational in this calender year.

The company at the event signed a memorandum of understanding (MoU) with the Gujarat government for setting up the plant.

Crowley said Jabil’s India operation started in 2003 and the company now employs over 75,000 people in India.

“We believe photonics holds immense opportunity in advanced industries like autonomous vehicles, treatment as well as 5G network and artificial intelligence applications,” he said.

India’s Millionaire Population Rises by 6% in 2024; Billionaires Reach 191, Says Knight Frank Report

New Delhi, Mar 5 (PTI) Number of Indian high-net-worth individuals (HNWIs), those having assets more than USD 10 million, rose 6 per cent last year to 85,698, according to Knight Frank.

Global property consultant Knight Frank on Wednesday released its ‘The Wealth Report 2025’, which estimated the HNWI population in India at 85,698 in 2024, as against 80,686 in the preceding year.

The number is expected to rise to 93,753 by 2028, reflecting India’s expanding wealth landscape, the consultant said.

The increasing trend of HNIW population highlights the country’s strong long-term economic growth, increasing investment opportunities, and evolving luxury market, positioning India as a key player in global wealth creation.

India’s billionaire population has also seen a strong year-on-year growth in 2024.

“India is now home to 191 billionaires, of which 26 joined the ranks in just the last year, which was pegged at just 7 in 2019,” the consultant said.

The combined wealth of Indian billionaires is estimated at USD 950 billion, ranking the country third globally, behind the US (USD 5.7 trillion) and Mainland China (USD 1.34 trillion).

“India’s growing wealth underscores its economic resilience and long-term growth potential. The country is witnessing an unprecedented rise in high-net-worth individuals, driven by entrepreneurial dynamism, global integration, and emerging industries,” Shishir Baijal, Chairman & Managing Director, Knight Frank India, said.

This expansion is not just in scale but also in the evolving investment preferences of India’s elite, who are diversifying across asset classes, from real estate to global equities, he added.

“In the decade ahead, India’s influence in global wealth creation will only strengthen,” Baijal said.

Govt Seeks USD 2.81 Bn from Reliance, BP for Producing Gas that Came from ONGC Block

New Delhi, Mar 4 (PTI) The government has slapped a USD 2.81 billion (about Rs 24,500 crore) demand notice on Reliance Industries Ltd and its partners, including BP Plc for gains made from producing and selling natural gas that may have migrated from neighbouring block of state-owned ONGC.

This follows the Delhi High Court’s decision on February 14, overturning an international arbitration tribunal ruling that held the duo not responsible for paying any compensation for the gas they produced and sold which had allegedly migrated from adjoining fields.

“Consequent upon the Division Bench judgment, the Ministry of Petroleum and Natural Gas has raised a demand of USD 2.81 billion on the PSC contractors namely Reliance Industries Ltd, BP Exploration (Alpha) Ltd and NIKO (NECO) Ltd,” Reliance said in a stock exchange filing.

Originally, Reliance held 60 per cent interest in Krishna Godavari basin deep-sea block KG-DWN-98/3 or KG-D6 while BP had 30 per cent and Canadian firm Niko held the remaining 10 per cent.

Subsequently, Reliance and BP took over Niko’s interest in the production sharing contract (PSC) and now hold 66.66 per cent and 33.33 per cent, respectively.

The government had in 2016 sought USD 1.55 billion from Reliance and its partners for the quantum of gas that had migrated to its block KG-D6 from adjoining fields of ONGC.

Reliance contested the claims before an arbitral tribunal which in July 2018 upheld that it was not obliged to pay any compensation.

The government filed an appeal and in May 2023, a single judge of Delhi High Court upheld the arbitration award, dismissing the government’s appeal. A division bench of the Delhi High Court last month set aside the single judge order, ruling against Reliance and its partners.

Reliance said the letter of demand was received by the company on March 3, 2025.

“The company is legally advised that the Division Bench judgment and this provisional demand are unsustainable. The company is taking steps to challenge the judgment of the Division Bench of Hon’ble Delhi High Court,” it said.

“The company does not expect any liability on this account,” it added.

Reliance had previously said that it would appeal the decision in the Supreme Court.

The dispute dates back to July 2013 when Oil and Natural Gas Corporation (ONGC) suspected reservoir connectivity of its KG-DWN-98/2 (KG-D5) and G-4 blocks with that of Reliance’s KG-D6.

It felt that at least four wells that Reliance drilled on the borderline with KG-D5 may have drained out its resources as well.

ONGC in May 2013 filed a writ in the Delhi High Court seeking compensation for the loss. On September 10, 2014, the Delhi High Court disposed-off ONGC’s petition and directed the government to take a decision, after it received a report from an independent panel set up by ONGC and RIL.

Global consultant DeGolyer and Mac Naughton (D&M) was appointed to carry out a third-party study. In its final report dated November 19, 2015, D&M concluded inter-alia that “the integrated analyses indicated connectivity and continuity of the reservoirs across the blocks operated by ONGC and Reliance.”

The report quantified the volume of gas migrated from Godavari PML and KG-DWN-98/2 to KG-DWN-98/3 block and respective production of gas from migrated volumes till March 31, 2015.

After submission of the D&M report, the government constituted a single member committee on December 15, 2015, composed of former Chief Justice of Delhi High Court Ajit Prakash Shah “to quantify the unfair enrichment” by Reliance.

The committee concluded that the Government of India, and not ONGC, is entitled to claim restitution from Reliance for the unjust benefit it received and unfairly retained.

ONGC has no locus standi to bring a tortious claim against Reliance for trespass/conversion since it does not have any ownership rights or possessory interest in the natural gas. All mineral resources are the property of the government of India.

Using Shah’s report, the government asked ONGC to step aside and took over the matter.

The Ministry of Petroleum and Natural Gas (MoPNG) in a November 4, 2026 order sought disgorgement from Reliance and its partners, demanding USD 1.47 billion from the partners for producing in seven years ending March 31, 2016 about 338.332 million British thermal units of gas that had seeped or migrated from ONGC’s blocks into their adjoining KG-D6 in the Bay of Bengal.

After deducting USD 71.71 million royalty paid on the gas produced and adding an interest at the rate of LIBOR plus 2 per cent, totalling USD 149.86 million, a total demand of USD 1.55 billion was made on Reliance, BP and Niko.

The government also pressed Reliance to pay USD 174.9 million of additional profit petroleum after certain costs were disallowed because of KG-D6 output being lower than the target.

Reliance and its partners on November 11, 2016, slapped an arbitration notice.

In July 2018, the international arbitration tribunal rejected the government’s claim. The three-member panel by a majority of 2-1 also awarded USD 8.3 million compensation to the three partners.

The government challenged the arbitration award before a single bench of Delhi High Court, seeking it be set aside as it “strikes at the heart of the public policy and has given a premium to a contractor (Reliance) that has amassed vast wealth by committing an insidious fraud as well as criminal offence.”

Delhi High Court in May 2023 upheld the arbitration award saying “the view taken by the arbitral tribunal is most certainly a “possible view”, which calls for no interference.”

The government approached the division bench of the Delhi High Court against the single bench order. The division bench, comprising justices Rekha Palli and Saurabh Banerjee, on February 15 set aside a May 2023 single bench ruling that had upheld the 2018 arbitration award rejecting the government’s claim.

PTI